Redwire crashes 61% as dilution and accounting woes mount

Redwire shares plunged 61% from their all-time high to $10.18 as dilution, widening losses, and accounting concerns eroded investor confidence in the space components maker.

"The adverse opinion reflects material weaknesses in internal controls over financial reporting," KPMG said in its audit of Redwire's 2025 annual report, flagging risks of potential accounting errors.

Redwire reported 2025 revenue of $335 million, up 10% from a year earlier, but its net loss nearly doubled to $227 million from $114 million. The wider losses stemmed from higher estimated project completion costs, goodwill impairment charges from acquisitions, increased spending on military drone programs, and higher stock-based compensation. Analysts project revenue will grow at a 26% compound annual rate to $664 million by 2028, with the net loss narrowing to $43 million.

The company went public through a SPAC merger on Sept. 3, 2021, with shares opening at $11.07 and reaching a record high of $25.90 on May 28, 2026. Redwire ended the first quarter of 2026 with $175 million in total liquidity but announced a $500 million at-the-market equity offering on June 9, adding to a share count that has already increased 232% since its public debut. The company trades at roughly five times this year's sales, with a market capitalization of $2.4 billion.

The 61% decline puts Redwire shares near their post-SPAC opening price, testing support at the $10 level. Investors will watch the company's second-quarter earnings report for updates on margin trends and the pace of the ATM offering.

This article is for informational purposes only and does not constitute investment advice.